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Federal Set-Aside Programs

Understanding small business set-asides can dramatically improve your chances of winning federal contracts.

What Are Set-Asides?

Federal agencies are required to award a certain percentage of contracts to small businesses. "Set-aside" contracts are reserved exclusively for businesses with specific certifications, reducing competition and improving your win probability.

Key Stat: The federal government's goal is to award 23% of all prime contract dollars to small businesses annually - that's over $150 billion in opportunities.

8(a) Business Development Program

The SBA's flagship program for socially and economically disadvantaged entrepreneurs.

Eligibility Requirements

  • At least 51% owned by U.S. citizens who are socially and economically disadvantaged
  • Personal net worth under $850,000 (excluding primary residence and business)
  • Been in business for at least 2 years
  • Small by SBA size standards for your industry

Benefits

  • Sole-source contracts up to $4.5M (manufacturing) or $7M (other)
  • Set-aside competitive contracts
  • 9-year program participation
  • Business development assistance and mentoring
Learn more at SBA.gov →

HUBZone Program

For businesses located in Historically Underutilized Business Zones.

Eligibility Requirements

  • Principal office in a HUBZone
  • At least 35% of employees reside in a HUBZone
  • At least 51% owned by U.S. citizens
  • Small by SBA size standards

Benefits

  • Sole-source contracts up to $4M (manufacturing) or $7M (other)
  • 10% price evaluation preference in full and open competition
  • Set-aside competitive contracts
Check if your address qualifies →

Women-Owned Small Business (WOSB)

For businesses at least 51% owned and controlled by women.

Two Categories

  • WOSB: At least 51% owned by women who control daily operations
  • EDWOSB: Economically Disadvantaged WOSB (personal net worth under $850K)

Benefits

  • Set-aside contracts in 83+ NAICS industries
  • Sole-source contracts up to $4.5M (manufacturing) or $7M (other)
  • EDWOSBs have access to more set-aside industries
Learn more at SBA.gov →

Service-Disabled Veteran-Owned (SDVOSB)

For businesses owned by veterans with service-connected disabilities.

Eligibility Requirements

  • At least 51% owned by service-disabled veterans
  • Veteran(s) must control day-to-day operations
  • VA letter documenting service-connected disability
  • Small by SBA size standards

Benefits

  • Sole-source contracts up to $4.5M (manufacturing) or $7M (other)
  • Set-aside competitive contracts
  • Government-wide 3% contracting goal
Learn more at SBA.gov →

General Small Business Set-Asides

Even without special certifications, being a small business opens doors.

Size Standards

The SBA defines "small" differently by industry, typically based on:

  • Number of employees (manufacturing: typically 500-1,500)
  • Average annual receipts (services: typically $8M-$41.5M)
Check your size standards →

Find Set-Aside Opportunities

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